FPIs inflow in India stock market at 9-month high in May. What to expect in June?
Foreign portfolio investors (FPIs) have pumped in over ₹43,000 crore in Indian equities in May, which is the highest investment in nine months by FPIs. Foreign investors have been buyers across sectors with massive investment pumped in financial services stocks. The trend in FPIs is likely to continue ahead, which does bring a possible case for the Nifty 50 to touch a new record high.
As per the NSDL data, FPIs inflow in Indian equities comes to ₹43,838 crore in May. This is not just the highest monthly buying of 2023, but also the highest since November last year.
“FPIs were aggressive buyers in the Market in May having invested ₹43838 crores through the stock market and primary market put together (Source: NSDL). A survey among foreign portfolio investors showed that India is now the consensus overweight among all emerging markets. In May, India attracted the largest investment among all emerging markets, and FPIs were sellers in China,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He said that FPIs are likely to continue their investment in India in June too since the latest GDP data and high frequency indicators reflect a robust economy gaining further strength. Financials, automobiles, telecom and construction are the ones attracting big investments.
The possibility of continued robust buying from FPIs could drive the Nifty 50 to reach high levels.
“Nifty racing to the all-time high of 18887 and breaking the record are highly possible in the next few trading days. But at record levels, selling pressure is likely since valuations will emerge as a concern,” he added.
On Friday, Sensex closed 119 points, or 0.19 per cent, higher at 62,547.11 while the Nifty ended at 18,534.10, up 46 points, or 0.25 per cent.
In the first two days of June, FPIs inflow in Indian markets stood at ₹6,489 crore.
In April month, FPIs inflow stood at ₹11,631 crore and ₹7,936 crore in March. The March investment was mainly driven by bulk investment in the Adani Group companies by the US-based GQG Partners. Year-to-date, FPIs are net buyers with an inflow of ₹35,748 crore in Indian equities.
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Updated: 03 Jun 2023, 05:10 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.